3 comments on “Why American Airlines Would Be Better Off Not Merging

  1. @Glenn Hunter, I don’t think the bizjournals.com writer makes a “pretty compelling case” at all for American to walk away from its merger with US Air. His case seems to come down to the fact they have stanched the bleeding and are righting the ship. Yes, well….the current airline climate is still the current climate, and the larger combined behemoths they must compete with going forward surely compels them to join the business model that now exists across the land. The bizjournals.com writer even acknowledges that “American management has a fiduciary responsibility to support the combination.” That’s a hard stop in my book.

    Beyond that, I’d listen to Bob Crandell, former head of American, who you have quoted recently, Glenn, on the subject. Granted, Bob’s not exactly a disinterested third party, but he’s a more empirical source on running an airline than a “business travel writer” whose own bio describes him as “a publication consultant, which means that he helps media companies start, fix and reposition newspapers, magazines and Web sites.” I do agree with him that “more independent competitors is good for our lives on the road.” So is a ten cent cup of coffee, yet I can’t seem to find that in my travels.

  2. So we think its a good idea to abandon ship on the merger and send all that dough that has been spent on attorneys and consultants to waste? Then we have to start all over again, coming up with a new plan of reorganization and waste even more money on said attorneys and consultants. Is it really good for all the creditors to have the airline sit in bankruptcy for another year or more to get a new plan approved by all the creditors and then the judge? Not to mention, for the first time in years, we have all the unions at both airlines on the same page wanting the same things. And did Joe forget that the APA, APFA, and the TWU all HATE Tom Horton, and want nothing to do with the current management team at AA? yeah, walking away doesn’t sound so good, and his argument really isn’t compelling.

  3. Except the unions at USAir are not together and on board with this. The pilots still haven’t worked out their differences after the America West merger. And it’s my opinion that Doug Parker will drive the largest airline into the ground, killing thousands of jobs in DFW.